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The Cypherpunks

The Cypherpunks

Pioneers of privacy in the digital age

December 11, 2024 8 min read 1421 words privacy bitcoin cryptography security philosophy

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In the early ’90s, with the internet on the rise, a group called the Cypherpunks emerged to defend digital privacy. They pushed for encryption and privacy, shaping our digital world with their vision.

The Cypherpunks were activists who believed privacy is a fundamental right. They built encryption tools like PGP and laid the groundwork for Bitcoin. Their legacy shapes how we think about digital privacy today.

Who were the Cypherpunks?#

The term “Cypherpunk” combines “cipher” (a reference to encryption) with “punk”, reflecting the group’s rebellious and anti-establishment spirit.

Far from being a formal organization, the Cypherpunks were a diverse assembly of visionaries, technologists, and activists bonded by shared principles. The movement started in 1992 when Eric Hughes, Timothy May, and John Gilmore founded the cypherpunks mailing list. Some key figures:

  • Eric Hughes who wrote “A Cypherpunk’s Manifesto,” laying out the philosophical foundation for the movement.
  • Timothy C. May authored “The Crypto Anarchist Manifesto,” which imagined a society where cryptography could foster a new anarchistic order.
  • John Gilmore, a co-founder of the Electronic Frontier Foundation (EFF), was pivotal in early internet privacy advocacy.
  • Julian Assange, later known for WikiLeaks, participated in these discussions.
  • Phil Zimmermann revolutionized email privacy with his creation of PGP.
  • Jude Milhon (St. Jude), a hacker and writer, coined the term “cypherpunk” together with Eric Hughes.
  • Nick Szabo contributed significantly to digital contracts and currencies, conceptualizing “bit gold” before Bitcoin.
  • Hal Finney, an early Bitcoin developer, worked on cryptographic software including PGP, influencing the privacy tech landscape.
  • Adam Back introduced Hashcash, which later inspired Bitcoin’s proof-of-work, while actively engaging in cypherpunk dialogues on privacy.
  • Wei Dai proposed “b-money,” an early idea for anonymous digital cash systems, which influenced Bitcoin’s development.
  • Zooko Wilcox-O’Hearn, with his work on Zcash, brought advanced privacy to cryptocurrencies, having roots in cypherpunk discussions.
  • David Chaum, often called the “godfather of cypherpunks”, pioneered digital cash with DigiCash (1989). His work on electronic privacy predates and inspired the movement.
  • Bram Cohen developed BitTorrent, showcasing the cypherpunk ethos of decentralization in file sharing.

Their work built on foundational cryptographic research by Whitfield Diffie and Martin Hellman, who invented public-key cryptography in 1976, making secure communication between strangers possible.

They gathered online on the cypherpunks mailing list, which at its peak had around 2000 subscribers exchanging 30+ messages per day. Their motto: “Cypherpunks write code.” They didn’t just talk about privacy. They built it.

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Philosophy and goals#

The core philosophy of the Cypherpunks was centered around privacy, freedom of speech, and the potential of cryptography to protect these rights. Their main tenets included:

  • Privacy as a fundamental right: They believed that privacy was essential for personal freedom and that digital communication should be private.
  • Decentralization: Suspicious of centralized control over information, they pushed for decentralized systems where individuals could control their own data.
  • Cryptography as a tool: They saw encryption not just as a means of securing data but as a political tool against surveillance and oppressive regimes.

Their goals were#

  1. To create and promote tools for encryption, anonymity, and digital cash.
  2. To educate the public on the importance of cryptography.
  3. To resist governmental and corporate efforts to control or monitor digital communications.

Impact nowadays#

Development of key technologies#

Cypherpunks built tools, not just theories:

  • PGP (1991): Email encryption for everyone
  • Tor (2002): Anonymous browsing through onion routing
  • BitTorrent (2001): Decentralized file sharing
  • Bitcoin (2009): Digital money without banks
  • Signal Protocol: The encryption behind Signal, WhatsApp, and other messengers

When you send an encrypted message today, you’re using cypherpunk technology.

Cultural shift#

They changed how society views privacy. Before them, encryption was mostly for governments or experts. Today, it’s a standard part of tools like messaging apps and web browsers. By promoting encryption and anonymity, they made privacy a priority and encouraged people to take control of their data.

The 1990s saw a real battle between cypherpunks and governments, known as the “Crypto Wars.” The US classified strong encryption as a weapon and banned its export. When Phil Zimmermann released PGP, he was investigated for “exporting munitions” because the software spread globally via the internet.

The cypherpunks fought back creatively. They printed PGP source code in books, since books were protected speech. They wore t-shirts with encryption code. Eventually, they won. Export restrictions were relaxed in 2000. Today’s encrypted messaging exists because of that fight.

Challenges and Criticisms#

The Cypherpunks face these main criticisms:

  • Accessibility: Their tools are too complex for many people, so only tech-savvy individuals can use them, leaving others behind.
  • Misuse Risk: There’s concern that their encryption tech could be used by bad actors. While Cypherpunks believe privacy is a right for all, this view conflicts with security concerns from authorities who fear these tools could hide illegal acts.

This shows the ongoing struggle between promoting privacy and maintaining safety in the digital world.

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Precursors to Bitcoin#

Bitcoin is the most well-known outcome of the cypherpunk philosophy, embodying their values of decentralization, privacy, and independence from government control over money. Created by the mysterious Satoshi Nakamoto, Bitcoin was first shared with the world through the cypherpunks’ mailing list in 2008.

However, it is the result of many trials of other technologies also created within this group of people. It uses ideas like proof-of-work from Hashcash, and concepts from b-money and bit gold, all reflecting the cypherpunks’ dream of a currency not controlled by any single entity.

DigiCash (eCash)#

Developed by David Chaum in the late 1980s and implemented in 1990, DigiCash was one of the earliest attempts at an electronic payment system. It used cryptography to ensure privacy in transactions but struggled with adoption and eventually failed due to issues like centralization and the double-spending problem.

B-Money#

Proposed by Wei Dai in 1998, B-Money was a conceptual framework for anonymous, distributed electronic cash. It aimed to solve issues like double-spending without a central authority but was never implemented. Its ideas influenced Bitcoin’s design.

Bit Gold#

Also conceptualized in 1998 by Nick Szabo, Bit Gold proposed a currency with properties similar to gold, using cryptographic proof-of-work. Like B-Money, it was never fully realized but contributed to Bitcoin’s development, particularly its proof-of-work system.

Hashcash#

Introduced by Adam Back in 1997, Hashcash was not a currency but a system to counter email spam using proof-of-work. This concept was later adopted by Bitcoin for mining.

These earlier projects and ideas, while not successful in creating a functional digital currency, were critical in laying the theoretical groundwork for Bitcoin. They tackled issues like double-spending, privacy, and decentralization, which were key problems Bitcoin aimed to solve.

Cypherpunk legacy#

Bitcoin has revolutionized our understanding of money, privacy, and security:

  • Decentralized Control: Bitcoin isn’t run by any bank or government, which fits perfectly with the cypherpunk’s skepticism of centralized power.
  • Privacy: While not completely anonymous, Bitcoin transactions use pseudonyms, offering some protection from financial oversight.
  • Immutable Transactions: Once a transaction is on the blockchain, it’s nearly unchangeable, fostering trust in digital dealings.

Bitcoin has brought cypherpunk ideals to life, sparking global discussions on financial privacy, money’s nature, and cryptography’s transformative power. With developments like the Lightning Network for faster, private transactions and Taproot for enhanced transaction privacy, Bitcoin continues to evolve.

Conclusion#

The cypherpunks proved that a small group of people who write code can change the world. Every encrypted message you send, every Bitcoin transaction, every anonymous browse: their legacy.

Privacy isn’t dead. They made sure of that.

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